Mitihoon – Ms. Kattiya Indaravijaya, Chief Executive Officer of KASIKORNBANK, said Thailand’s economy continued to slow down in the second quarter of 2025, particularly in private spending, industrial production, and revenue from foreign tourists. This aligns with a decline in both consumer and business confidence indices. Additionally, public spending, both current and investment expenditures, contracted due to the high base in the same period of last year, when the fiscal year 2024 Budget Act came into effect. For the second half of 2025, the Thai economy is expected to grow at a significantly slower rate compared to the first half of the year or even face the risk of stagnation. This is mainly due to a sharp contraction in exports following high growth in the first half. Furthermore, Thai exports may be subject to higher US import tariffs than those of competitors, which could have a prolonged negative impact on investment sentiment. Meanwhile, momentum from the tourism sector is expected to weaken significantly, while the government’s fiscal stimulus is likely to remain limited. These downside risks are also expected to continue weighing on Thailand’s economy in 2026.
Amidst a range of challenges stemming from high risk economic factors both domestically and globally, as well as concerns regarding the global economic slowdown, the Bank and its subsidiaries continue to operate with prudence and remain committed to deliver sustainable value to all stakeholders, including responsibilities towards depositors, investors, covering both individual and business customers by providing appropriate assistance in various aspects. This includes responsible lending guidelines, as well as full support for government measures such as the “You Fight, We Help” program and other assistance measures, including passing on reduced financial costs to alleviate customer burdens. This support enables customers to sustain their lives and businesses along with committing to deliver sustainable returns to shareholders through the execution of K-Strategy 3+1 and continuous focus on productivity improvement within a highly uncertain economic environment.
Operating performance for the second quarter of 2025 compared with the first quarter of 2025, the Bank and its subsidiaries reported net profit attributable to equity holders of the Bank of Baht 12,488 million, a decrease of Baht 1,303 million or 9.45%, primarily due to a decline in net interest income in line with market conditions. Additionally, the Bank provided support by reducing loan interest rates to enhance customers’ financial flexibility and strengthen their business potential. Net interest margin decreased to 3.31%, although non – interest income of Baht 13,944 million, an increase of Baht 266 million or 1.95%, mainly from insurance service result and investment income. Other operating expenses of Baht 20,803 million, an increase of Baht 751 million or 3.75% from the preceding quarter, primarily due to IT-related expenses to support the expansion of customer service channels and marketing expenses. However, the Bank and its subsidiaries continue to prioritize the management of expenses within integrated budget management. As a result, other operating expenses decreased by 1.68% compared with the same quarter of the previous year. Additionally, expected credit loss (ECL) of Baht 10,050 million, an increase of Baht 232 million or 2.36%, in line with ongoing prudence to maintain appropriate ECL to support the continued economic slowdown and future uncertainties.
Operating performance for the six month of 2025 compared with the restated performance for the six month of 2024, the Bank and its subsidiaries reported operating profit before expected credit loss and income tax expense of Baht 56,847 million, a decrease of Baht 2,470 million or 4.16%, due to a decline in net operating income, primarily from net interest income of Baht 70,080 million, a decrease of Baht 5,234 million or 6.95%, in line with interest rate conditions and loans interest rate reductions to enhance customers’ financial flexibility and strengthen their business potential. This resulted in a decrease in net interest margin to 3.36%, although non – interest income of Baht 27,622 million, an increase of Baht 2,409 million or 9.55%, mainly from gains on financial instrument measured at fair value through profit or loss, investment income, and net fees and service income. Other operating expenses of Baht 40,855 million, a decrease of Baht 355 million or 0.86%, due to continuous operational efficiency improvements amid the economic slowdown. Cost to income ratio stood at 41.82%. As consistently practiced, the Bank and its subsidiaries continue to prudently set aside ECL which was Baht 19,868 million to maintain appropriate ECL in line with the volatile and challenging economic conditions. As a result, net profit attributable to equity holders of the Bank for the six month of 2025 was Baht 26,280 million, a decrease of Baht 260 million or 0.98%.
As of 30 June 2025, the Bank and its subsidiaries’ total assets were Baht 4,374,808 million, a slight increase of Baht 33,854 million or 0.78% compared with the restated total assets as of 31 December 2024. Most of an increase came from net investments which was investment based on expectation of market conditions and interest rate trend. However, net loans decreased in line with economic slowdown. The Bank remains focused on quality loans expansion, emphasizing asset quality and optimizing risk-adjusted returns. NPL gross to total loans stood at 3.18%, requiring careful monitoring of asset quality amid economic uncertainties and coverage ratio increased to 162.77%. As of 30 June 2025, KASIKORNBANK FINANCIAL CONGLOMERATE’s capital adequacy Ratio (CAR) according to the Basel III Accord remained strong at 20.66%
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